Human Resource Management, Employee Exchange Relationships, and Performance in Small Businesses

Mathew R. Allen*, Jeff Ericksen, Christopher J. Collins

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

60 Scopus citations

Abstract

In this study, the authors examine the effects of commitment-based human resource management practices on the performance of small businesses. These effects are examined through the mediators of employee involvement and quit rates. In addition, they contribute to arguments that the effect of human resource management practices on performance takes place through the establishment and support of exchange relationships with employees. Using responses from CEOs and employees of small businesses, their results indicate that human resource practices in small businesses that are based on leaders' views of employee commitment are positively related to revenue growth and perceptions of performance. Further, the authors found that employee involvement and quit rates mediate these relationships.

Original languageEnglish (US)
Pages (from-to)153-173
Number of pages21
JournalHuman Resource Management
Volume52
Issue number2
DOIs
StatePublished - Mar 2013

Keywords

  • Entrepreneurial/small business
  • Strategic HR

ASJC Scopus subject areas

  • Applied Psychology
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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